Fringe benefit tax on specific categories of benefits: Free, subsidised or discounted goods and services

Attributed and non-attributed benefits for goods, services and subsidised transport

Attributed and non-attributed goods and services benefits

There is an annual taxable value threshold of $2,000 per employee for all free, subsidised or discounted goods and services.

• If the free, subsidised or discounted goods and services that you provide fall below this threshold, you do not have to attribute the benefits to the individual employee receiving them. See more on the tax rate for non-attributed benefits.
• If you attribute any fringe benefits within this threshold, you must attribute all benefits in this category.
• If an employee's total benefit in this category exceeds the threshold, you must attribute the benefit to the employee.

If you are choosing the multi-rate calculation process and attributing benefits, we recommend that you identify the benefits that are attributed and non-attributed on a quarterly basis. This approach will save you time at the end of the year when you complete your return for the final quarter.

Attributed and non-attributed subsidised transport benefits

As an employer in the public transport business, you need not attribute subsidised transport to individual employees if all employees have the same or a similar entitlement. However:

• If employees differ in their entitlement to subsidised transport, you must attribute it where the annual taxable value is more than $1,000 for an employee.
• If you attribute one benefit, you must attribute all benefits in this category.
• If an employee's total benefit in this category exceeds the threshold of $1,000, you must attribute the benefit to them.

If you are choosing the multi-rate calculation process and attributing benefits, we recommend that you identify the benefits that are attributed and non-attributed on a quarterly basis. This approach will save you time at the end of the year when you complete your return for the final quarter.

Other pages in: Free, subsidised or discounted goods and services

• Exempt goods or services
• Free, subsidised or discounted goods
• Goods and services provided to shareholder-employees
• Subsidised transport
• Free, subsidised or discounted services
• Record keeping for goods, services and subsidised transport

Date published: 14 Oct 2004

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